Tamil Nadu government amends crop loan waiver scheme, allocates additional funding of ₹2,842.77 crore

According to a report by The Hindu, the Tamil Nadu government has made a major amendment to the crop loan waiver scheme. Under this scheme, a loan waiver of ₹75,000 has been announced for farmers who took loans of more than ₹75,000 from cooperative institutions. Farmers who took crop loans up to ₹75,000 will continue to get the benefit of full loan waiver as before.

According to the previous arrangement, farmers who took loans ranging from ₹75,000 to ₹1 lakh received a maximum waiver of ₹75,000, while those who took loans exceeding ₹1 lakh were given a maximum waiver of ₹35,000. These rules have now been amended.

In addition, the government has increased the eligibility period of the scheme by one month. Now, loans taken by farmers up to 31 March 2026 have been included under this scheme. Earlier, this scheme was applicable only for loans taken between 1 May 2025 and 28 February 2026.

A government order in this regard has been issued by the Cooperation, Food and Consumer Protection Department. For the implementation of the expanded scheme, the state government has sanctioned an additional ₹2,842.77 crore. The total estimated expenditure on the revised crop loan waiver scheme comes to ₹9,062.83 crore, out of which ₹6,220.056 crore has already been released.

Under the revised scheme, 5,90,621 farmers who took loans up to ₹75,000 will get the benefit of complete loan waiver, while 7,34,260 farmers who took loans above ₹75,000 will be eligible for a flat waiver of ₹75,000.

The government has also extended the benefit of this scheme to 10,810 farmers who had repaid the full amount of their loans even before the crop loan waiver announcement was issued. The revised order also provides for various interest-related reimbursements to benefit eligible farmers.